By Tochukwu Bliss, Abuja
Henceforth, each Bureau de Change (BDC) operator is only allowed to purchase a total of $25,000 from a single authorised dealer per week.
This is according to the Central Bank of Nigeria (CBN) latest guidelines on foreign exchange (FX) purchases by BDC operators.
The apex bank also directed the BDCs to comply with Know Your Customer (KYC) measures.
A circular signed by the Acting Director, Trade and Exchange Department, W. J. Kanya, reads further: “A BDC shall approach its preferred Authorised Dealer Bank (ADB) and can only procure the said amount from only that bank of its choice in a week. Any breach of this condition will attract appropriate sanction.
“The selling rate by the Authorised Dealers to BDCs shall be the prevailing day rate at NFEM window.”
The circular further directed that FX cash purchased by BDCs from authorised dealer banks must be sold to end-users at a rate not exceeding one per cent margin above the buying rate.
It added that the one per cent margin shall be applicable to all FX to be retailed by BDCs regardless of the sources of the funds.
It is to be noted that Authorised Dealer Banks and BDC operators shall ensure strict compliance to the provisions of Anti-Money Laundering Laws and observance of appropriate KYC principles in the handling of these transactions.
Likewise, authorised dealer banks are to render weekly returns on sales to BDCs on a specified format attached to the guidelines to be addressed to the apex bank.
It urged all BDCs to render daily returns on FX purchases from authorised dealer banks and other sources as well as sales on the Financial Institutions Forex Reporting System (FIFX).
Also, FX purchased by BDCs must be disbursed for specific transactions including Business Travel Allowance/Personal Travel Allowance; Overseas School fees and Overseas Medical fees, and in all cases, the maximum disbursement per transaction should not exceed $5,000 quarterly.
The CBN continued: “Records shall be maintained for all transactions by the BDCs showing the BVN of the end-user, including endorsement of the amount disbursed in the International Passport of the beneficiary.
“It is to be noted that Authorised Dealer Banks and BDC operators shall ensure strict compliance to the provisions of Anti-Money Laundering Laws and observance of appropriate KYC principles in the handling of these transactions.”
The bank warned that any authorised dealer bank or BDC who diverts the funds or violates the provision of the guidelines would face sanctions including suspension of its dealership license.
